The Efficiency of Pay Per Click

The Efficiency of Pay Per Click

Though the exact name of this type of advertising has been changing over the years, the idea behind it has remained the same. Companies pay money to get their ads shown on websites, and people click on those ads because they are relevant to what they were just reading or because they are funny or because they’re interested in what you’re selling. Since there’s no bidding involved, it’s easy to see why some people say that pay per click has efficiency. What do you think? Do you agree? If not, why not?

How much does it cost?

The cost to advertise via pay per click is based on your bid amount, search volume, and conversion rate. The higher your bid and search volume, or conversion rate (the percentage of clicks that lead to a sale), the lower your cost per click will be. Think you can’t afford it? Remember: There are many free options such as Facebook and Twitter advertising that have millions of potential customers.

How much does it cost vs Facebook ads

What is unique about PPC ads is that you pay only when people click on your ad. Facebook ads can actually work more efficiently than some forms of social media marketing—especially if you are selling a premium product or want to make a quick sale. In most cases, Facebook ad cost per click is less than $0.30 and often as low as $0.10 cents per click for relevant keywords and highly targeted audiences.

Analytics comparison

To analyze pay-per-click (PPC) campaigns, we need to compare two metrics: cost per click and cost per acquisition. It’s not uncommon for advertisers to see one metric—usually cost per click—improve while another—cost per acquisition—gets worse. For example, imagine a PPC campaign that starts out with very low CPCs but also high CPA’s.

ROI comparison

When you start to look at a PPC platform, you’ll find one major difference compared to other forms of advertising: With PPC, you’re buying results. It can be a difficult concept to grasp at first, but it can also be very useful when trying to figure out whether or not a campaign is worth your hard-earned money. Let’s say your company spends $10,000 on PPC over two months. How do you know if it was worth it?

When you should use PPC or FB Ads
First, there’s never a wrong time to utilize PPC and Facebook Ads. They are valuable tools that can bring you profits regardless of what stage your business is in. That said, some businesses will be able to reap greater benefits than others depending on their current situation. Here are a few things to consider when deciding if now is right for you

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